Quantcast

CEO of AMLBot on MiCA compliance: '75% of VASPs will need to cease their operations'

Polymarket Blocks French Traders Amid Gambling Inquiry
Gary Gensler announces his resignation for the inauguration of Donald Trump
Bitcoin in search of 100,000 $: A $400 million standoff
Trump's US-Propelled Crypto Adoption – Will France Follow?
MicroStrategy Upsizes Debt Offering to $2.6B; Breaks Into Top 100 U.S. Public Companies by Market Cap
Bitcoin on November 20 – BTC dominates the crypto market in this bull run
BIS study questions decentralization in DeFi liquidity provision
Bitcoin surges to record high near $95,000
Polish Presidential Candidate Bullish on Bitcoin – Following in Donald Trump’s Footsteps?
Cryptocurrencies: Goldman Sachs will dedicate its blockchain to institutional trading
Michael Saylor's MicroStrategy Added Additional 51,780 Bitcoin for $4.6B
Speculation looms over SEC leadership under Trump as rhetoric escalates
Outlier Ventures CCO: 'Fundamental crypto general-purpose technology' in off-chain sectors is 'interesting'
Bank of Russia revokes license of Corporate Finance Bank LLC
MANTRA CEO: 'We're obviously meant to be relatively agnostic' as a 'layer one blockchain'
Bitcoin blips down as Fed’s Powell says no ‘hurry to lower rates’
Chainalysis CRO: 'I think TradFi is coming to the blockchain'
KYC, filtering, and sanctions: the European Banking Authority wants to toughen crypto regulation
Trump Names Former SEC Chair Jay Clayton to DOJ Office, the Same Office That Prosecuted SBF
Gary Gensler's days at the SEC are numbered – His letter suggests his resignationGary Gensler's days at the SEC are numbered – His letter suggests his resignation
Visa launches tokenized asset platform to bridge fiat and blockchain
DFF CEO: 'There needs to be more collaboration, more unity between nations'
Bitcoin: BTC surpasses $92,000, on the way to $100,000?
BlackRock Expands Tokenized Fund BUIDL Beyond Ethereum to 5 New Blockchains
Donald Trump Places Elon Musk in Government Position – What Impact on Dogecoin (DOGE)?
Dogecoin Flips XRP as Elon Musk-Linked Trade Keeps on Giving
Elon Musk revives the idea of dismantling the Federal Reserve (Fed): A call to Bitcoin supporters?
Bitcoin offers almost a new ATH per day – 100,000$ by January?
Dubai real estate policy director: We aim to grow 'real estate transactions' to '1 trillion dirhams'
Nansen CEO: 'We believe that every asset will be tokenized'
CEO of AMLBot on MiCA compliance: '75% of VASPs will need to cease their operations'
Web3/Crypto
Webp   20250314t113934 063
Slava Demchuk, Co-founder and CEO of AMLBot | X

Slava Demchuk, CEO of AMLBot, said that the implementation of the Markets in Crypto-Assets Regulation (MiCA) will compel 75% of virtual asset service providers (VASPs) in the European Union to halt operations due to compliance challenges. This assertion was made in an Op-Ed published on March 13.

"The MiCA regulation is, in essence, a good legal framework for the crypto industry, but it also has some disadvantages, especially for crypto startups and small businesses," said Demchuk, Co-Founder and CEO. "Looking at the case of Estonia and its implementation of crypto licenses in 2017, it is possible to predict that around 75% of VASPs will need to cease their operations in the EU. Acquiring a MiCA license is expensive… typically around 30,000-80,000 euros, depending on the business model and country of incorporation. Where does that leave the small businesses and the startups? They will not be equipped to comply with MiCA."

According to the European Securities and Markets Authority (ESMA), MiCA is a comprehensive legal framework established by the European Union to regulate crypto-assets and related services. The regulation aims to enhance consumer protection, ensure financial stability, and foster innovation within the crypto market. It introduces uniform rules across EU member states, covering aspects such as transparency requirements, authorization, and supervision of crypto-asset service providers.

Get the Newsletter
Sign-up to receive weekly round up of news from Crypto Republique
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Legal Nodes reports that MiCA's implementation is expected to impose substantial compliance costs on crypto-asset service providers (CASPs). These costs include licensing fees ranging from €30,000 to €80,000, depending on the business model and country of incorporation. Additionally, CASPs must establish robust operational frameworks including anti-money laundering (AML) and know-your-customer (KYC) procedures, data protection measures, and cyber resilience strategies. This necessitates hiring specialized personnel.

As reported by the Wall Street Journal, companies like Binance and Coinbase continue to face regulatory challenges despite significant investments in compliance. Binance has allocated over $213 million to its KYC and AML programs, securing 21 regulatory approvals including registration with India's Financial Intelligence Unit. Similarly, Coinbase has expanded its global compliance initiatives but remains entangled in legal disputes in both the U.S. and Europe. These obstacles highlight the intense regulatory scrutiny faced even by highly compliant cryptocurrency exchanges.

Demchuk is also the co-founder of AMLBot, a company specializing in anti-money laundering compliance solutions for the cryptocurrency industry. With a background in financial compliance and blockchain analytics, he has been instrumental in developing tools that assist crypto businesses in adhering to regulatory standards. His expertise positions him as a thought leader in navigating the evolving landscape of crypto regulation.

Organizations Included in this History
More News

Here’s how Bitcoin, Ethereum, Binance Coin, and other key cryptocurrencies performed on March 14, 2025.

Mar 15, 2025

Slava Demchuk, CEO of AMLBot, said that the implementation of the Markets in Crypto-Assets Regulation (MiCA) will compel 75% of virtual asset service providers (VASPs) in the European Union to halt operations due to compliance challenges.

Mar 14, 2025

Today’s crypto overview: Price action across Bitcoin, Ethereum, Binance Coin, and more on March 13, 2025.

Mar 14, 2025

Bitcoin, Ethereum, Binance Coin & more: Today's crypto overview — March 12, 2025

Mar 13, 2025

OKX has announced that it has secured full Markets in Crypto-Assets (MiCA) approval amid an ongoing European regulatory investigation into its Web3 platform.

Mar 13, 2025

From Bitcoin to Solana: Here’s how major cryptocurrencies moved today – March 11, 2025.

Mar 12, 2025